Which of the following conditions distinguishes monopolistic competition from perfect competition?
A)Number of sellers
B)Freedom of entry and exit
C)Perfect information
D)Homogeneity of the product

Question

Quizplus · Accepted Answer

Homogeneity of the product is a distinguishing factor between monopolistic competition and perfect competition. In perfect competition, all firms produce identical products, whereas in monopolistic competition, firms differentiate their products through branding, packaging, quality, and other factors.

Which of the Following Conditions Distinguishes Monopolistic Competition from Perfect